The Cryptoverse is always volatile and opportunities to earn (or lose) money are always there! I am a holder so I don't care much about market volatility, dips and surges but sometimes I will buy the dip. The last time I did showed me that HODL is always the best option, as the market kept dipping after I invested!
But what really means to buy the dip? Basically is buying cryptocurrencies when the market is down and obtain profit, or an increase in value, once the value starts growing towards an expected value. Understanding crypto is quite difficult and I will try to wrap it in a commercial way, using my purchases on Crypto.com and a comparison between Bitcoin and merchandise.
The Pandora Experiment
The name sounds cool and I chose this one because my first ever transactions using Crypto.com were gifts from Pandora for my wife. I chose Pandora because they had a 50% discount sale, similar to what happened to the crypto market in May-June.
I spent £128 on Pandora charms, earrings and one pendant, but few days before the sale their value was £256 so in my opinion I got a bargain. I would have bought few full price items as birthday gifts so the sale suited me well. If you were waiting for the right time to buy Bitcoin, the May market crash was the 50% sale opportunity.
Bitcoin's value is now $44,000 and the All-time High was set on the 14th of May 2021 at 64,804.72 USD. If I was happy to pay £256 for the Pandora items, I assume that some were happy to pay between $44,000 and $64,000 for one Bitcoin. Well... the difference is huge ... and the $20,000 extremities of the spectrum are the difference between a good deal and a bad deal.
The Bitcoin price when I bought the Pandora items was close to $30,000 and considering the All-time High, that is more than a 50% off sale. Those who bought one Bitcoin between 17th and 28th of June, are now with $14,000 in profit, approximately 48% more than the amount invested. Using my Crypto.com card at Pandora gave me 1% cashback, adding 15.95 CRO in my wallet and deducting £2.10 more from the price I paid.
I also used TopCashback for the purchase and added another little income for a transaction that was planned with the 50% off or the cashback. Adding £2.86 cashback from a £128 transaction is adding more value for money and is reducing the price I paid even more. Little bonuses like TopCashback and Crypto.com can be compared with sign-up bonuses on Celsius Network or Coinbase. New users will receive $BTC for buying/sending crypto in their newly created account, adding more value to their crypto. Buying the dip is a good method to join the crypto movement or to improve the portfolio, by getting the assets at a better value than the expected market value.
I paid £128 for items that usually were sold for £256 and received £5 cashback, spending only £123 on gifts. The amount I paid was only 48% of the market price because I took advantage of the offer, and because I used the right tools. Maybe Pandora charms will get more expensive in the next years but most certainly crypto value will always improve with time. Comparing the Bitcoin value from August 2020 with the August 2021 value is giving enough intel to understand that cryptocurrencies and blockchain will keep evolving and will be integrated in many sectors. Last year Bitcoin was valued at $11,570 and today price is 380% more. Our ancestors were part of the industrial revolution, we are part of the blockchain revolution.
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